The NCLAT in JM Financial Asset Reconstruction Company Ltd. v. Samay Electronics Pvt. Ltd., the same Bench of the Adjudicating Authority, which passed two conflicting orders, to make a reference to Hon’ble President, NCLT, if not already made, in terms of Section 419 (5) of the Companies Act 2013, for hearing on the issues and points on which the two Members
Section 14 of the IBC prevents the payment of any pre-CIRP dues of a creditor during the moratorium period. The moratorium does not affect the payment of dues/costs arising in the course of the CIRP of the CD. These dues/costs are categorized as “insolvency resolution process costs” (CIRP costs), and to the extent unpaid, are to be given priority for
Individual insolvency and bankruptcy were covered under the two pre-independence legislations: The Presidency Towns Insolvency Act, 1909, and the Provincial Insolvency Act, 1920. It should be noted that pending notification of the provisions relating to individual insolvency and bankruptcy under the Code, these statutes still continue to apply. For companies, the basic law dealing with their winding up or liquidation
Loan moratorium base- what transpired between the Reserve Bank and The IBC laws Reserve Bank of India has informed the Top Court that borrowers opting for resolution of COVID-related stressed loans shall not be required to submit any specific plans. The Resolution Framework does not require any resolution plan in any form to be submitted to the lending institutions at
JSW Steel Ltd. Vs. Mahender Kumar Khandelwal & Ors.-NCLAT In the CIRP of Bhushan Power & Steel Limited- (Corporate Debtor), the Resolution Plan submitted by JSW Steel Limited (Resolution Applicant) has been approved by the Adjudicating Authority by impugned Judgment dated 5th September, 2019 with certain conditions. After the approval of plan when Monitoring Committee was monitoring the change of
M/s Transtec Resources Private Limited vs Registrar of Companies (12-11-2020) The petition was filed under section 252 (3) of the Companies Act- Gist of section 252: Section 252 of Companies Act, 2013 states that an individual aggrieved by an order given by the Registrar, stating a company as dissolved under Section 248, can file an appeal to the NCLT in less than
Information furnished from the Information Utility: a necessity? NCLT:DELHI In the recently held judgment – M/s Dhankalash Distributors Pvt Ltd vs M/s Arena Superstructures Pvt Ltd the Principal Bench had held that the information produced from the Information Utility is not necessary when other necessary documents are available to establish a debt/default. The corporate debtor had defaulted in repaying Principal
The IBC Ordinance, 2020 promulgated on June 5, 2020. The scheme stipulates and lays down extra norms for insolvency proceedings. The government had felt that operation of Section 7,9 and 10 should be suspended due to the economic distress faced during the pandemic. Negatives: “Section 10A: Suspension of initiation of corporate insolvency resolution process 10A. Notwithstanding anything contained in Sections
Amid the lockdown, the President of India, Mr. Ram Nath Kovind passed the much- awaited amendment ordinance to suspend and implement certain provisions for the time being due to the COVID-19 disruption which stopped the functioning of many markets and has made companies insolvent therefore the current amendments came into force to save these companies and help them to revive. The
The Central Board of Direct Taxes (CBDT) has exempted the purchase of shares at a discount to the market price from income tax in companies undergoing insolvency proceedings and whose board has been taken over by the government. These exemptions would come into effect from April 1, 2020, and shall be applicable for the assessment year 2020-21 and thereafter. This
